Weygandt's Managerial Accounting

Tools for Business Decision Making, Global Edition

Häftad, Engelska, 2017

AvJerry J. Weygandt,Paul D. Kimmel,Donald E. Kieso

969 kr

Tillfälligt slut

Weygandt's Managerial Accounting provides students with a clear introduction to fundamental managerial accounting concepts. This edition helps students get the most out of their accounting course by making practice simple. Designed for a one-semester, undergraduate Managerial Accounting course, the authors provide new opportunities for self-guided practice allowing students to check their knowledge of accounting concepts, skills, and problem solving techniques and receive personalized feedback at the question, learning objective, and course level.Newly streamlined learning objectives help students use their study time efficiently by creating clear connections between the reading and video content, and the practice, homework, and assessment questions.Using metric units and companies with a more global feel, this new text is ideal for courses across the world.

Produktinformation

Utgivningsdatum2017-10-24
Mått10 x 10 x 10 mm
Vikt454 g
FormatHäftad
SpråkEngelska
Antal sidor688
FörlagJohn Wiley & Sons Inc
ISBN9781119419655

Tillhör följande kategorier

Redovisning inom Ekonomi och Ledarskap

1 Managerial Accounting 1-1Just Add Water and Paddle: Current Designs 1-1Managerial Accounting Basics 1-2Comparing Managerial and Financial Accounting 1-3Management Functions 1-4Organizational Structure 1-5Managerial Cost Concepts 1-7Manufacturing Costs 1-7Product Versus Period Costs 1-8Illustration of Cost Concepts 1-9Manufacturer Financial Statements 1-11Income Statement 1-11Cost of Goods Manufactured 1-12Cost of Goods Manufactured Schedule 1-12Statement of Financial Position 1-13Managerial Accounting Trends 1-15Service Industries 1-15Focus on the Value Chain 1-16Balanced Scorecard 1-17Business Ethics 1-17Company Social Responsibility 1-182 Job Order Costing 2-1Profiting from the Silver Screen: Disney 2-1Cost Accounting Systems 2-2Process Cost System 2-3Job Order Cost System 2-3Job Order Cost Flow 2-4Accumulating Manufacturing Costs 2-5Job Cost Sheets and Manufacturing Costs 2-7Raw Materials Costs 2-7Factory Labor Costs 2-9Predetermined Overhead Rates 2-12Completed and Sold Manufacturing andService Jobs 2-14Assigning Costs to Finished Goods 2-14Assigning Costs to Cost of Goods Sold 2-15Summary of Job Order Cost Flows 2-16Job Order Costing for Service Companies 2-17Advantages and Disadvantages of JobOrder Costing 2-18Applied Manufacturing Overhead 2-19Under- or Over applied Manufacturing Overhead 2-203 Process Costing 3-1Famed Soft Drink in the Outback: Back o’ Bourke Cordials 3-1Overview of Process Cost Systems 3-2Uses of Process Cost Systems 3-2Process Costing for Service Companies 3-3Similarities and Differences Between Job Order Cost and Process Cost Systems 3-4Recording Costs 3-5Process Cost Flow 3-5Assigning Manufacturing Costs—Journal Entries 3-6Equivalent Units 3-9Weighted-Average Method 3-9Refinements on the Weighted-Average Method 3-10The Production Cost Report 3-12Compute the Physical Unit Flow (Step 1) 3-13Compute the Equivalent Units ofProduction (Step 2) 3-13Compute Unit Production Costs (Step 3) 3-14Prepare a Cost Reconciliation Schedule (Step 4) 3-14Preparing the Production Cost Report 3-15Costing Systems—Final Comments 3-15Appendix 3A: FIFO Method for Computing Equivalent Units 3-19Equivalent Units Under FIFO 3-19Comprehensive Example 3-20FIFO and Weighted-Average 3-254 Activity-Based Costing 4-1Wellness for Customers and the Company: Technogym SpA 4-1Traditional vs. Activity-Based Costing 4-3Traditional Costing Systems 4-3Illustration of a Traditional Costing System 4-3The Need for a New Approach 4-4Activity-Based Costing 4-4ABC and Manufacturers 4-7Identify and Classify Activities and Assign Overhead to Cost Pools (Step 1) 4-7Identify Cost Drivers (Step 2) 4-8Compute Activity-Based Overhead Rates (Step 3) 4-8Allocate Overhead Costs to Products (Step 4) 4-8Comparing Unit Costs 4-9ABC Benefits and Limitations 4-12The Advantage of Multiple Cost Pools 4-12The Advantage of Enhanced Cost Control 4-14The Advantage of Better Management Decisions 4-15Some Limitations and Knowing When to Use ABC 4-16ABC and Service Industries 4-17Traditional Costing Example 4-17Activity-Based Costing Example 4-18Appendix 4A: Just-in-Time Processing 4-21Objective of JIT Processing 4-22Elements of JIT Processing 4-22Benefits of JIT Processing 4-235 Cost-Volume-Profit 5-1Don’t Worry—Just Get Big: Amazon.com 5-1Cost Behavior Analysis 5-2Variable Costs 5-3Fixed Costs 5-4Relevant Range 5-5Mixed Costs 5-5Mixed Costs Analysis 5-7High-Low Method 5-7Importance of Identifying Variable and Fixed Costs 5-9CVP Analysis 5-10Basic Components 5-10CVP Income Statement 5-11Break-Even Analysis 5-14Mathematical Equation 5-14Contribution Margin Technique 5-15Graphic Presentation 5-16Target Net Income and Margin of Safety 5-18Target Net Income 5-18Margin of Safety 5-196 Cost-Volume-Profit Analysis: Additional Issues 6-1The Secret to Supermarket Profitability: Aldi 6-1Basic CVP Concepts 6-2Basic Concepts 6-2Basic Computations 6-3CVP and Changes in the Business Environment 6-5Sales Mix and Break-Even Sales 6-7Break-Even Sales in Units 6-8Break-Even Sales for a Large Number of Products 6-9Sales Mix with Limited Resources 6-11Operating Leverage and Profitability 6-14Effect on Contribution Margin Ratio 6-15Effect on Break-Even Point 6-15Effect on Margin of Safety Ratio 6-15Operating Leverage 6-16Appendix 6A: Absorption Costing Versus Variable Costing 6-18Example Comparing Absorption Costing with Variable Costing 6-19Net Income Effects 6-21Decision-Making Concerns 6-24Potential Advantages of Variable Costing 6-267 Incremental Analysis 7-1The Internet of Clothing: Evrythng 7-1Decision-Making and Incremental Analysis 7-3Incremental Analysis Approach 7-3How Incremental Analysis Works 7-4Qualitative Factors 7-5Relationship of Incremental Analysis and Activity-Based Costing 7-5Types of Incremental Analysis 7-6Special Orders 7-6Make or Buy 7-8Opportunity Cost 7-9Sell or Process Further 7-10Single-Product Case 7-11Multiple-Product Case 7-11Repair, Retain, or Replace Equipment 7-14Eliminate Unprofitable Segment or Product 7-158 Pricing 8-1They’ve Got Your Size—and Color: Zappos.com 8-1Target Costing 8-2Target Costing 8-4Cost-Plus Pricing 8-5Calculating Cost-Plus Pricing 8-5Limitations of Cost-Plus Pricing 8-7Variable-Cost Pricing 8-8Time-and-Material Pricing 8-9Transfer Pricing 8-12Negotiated Transfer Prices 8-13Cost-Based Transfer Prices 8-15Market-Based Transfer Prices 8-17Effect of Outsourcing on Transfer Pricing 8-17Transfers Between Divisions in Different Countries 8-17Appendix 8A: Absorption-Cost and Variable-Cost Pricing 8-19Absorption-Cost Pricing 8-20Variable-Cost Pricing 8-21Appendix 8B: Transferring Goods Between Divisions inDifferent Countries 8-239 Budgetary Planning 9-1What’s in Your Cupcake?: BabyCakes NYC 9-1Effective Budgeting and the Master Budget 9-2Budgeting and Accounting 9-3The Benefits of Budgeting 9-3Essentials of Effective Budgeting 9-3The Master Budget 9-6Sales, Production, and Direct Materials Budgets 9-7Sales Budget 9-7Production Budget 9-8Direct Materials Budget 9-9Direct Labor, Manufacturing Overhead, and S&AExpense Budgets 9-12Direct Labor Budget 9-12Manufacturing Overhead Budget 9-13Selling and Administrative Expense Budget 9-14Budgeted Income Statement 9-14Cash Budget and Budgeted Statement of Financial Position 9-16Cash Budget 9-16Budgeted Statement of Financial Position 9-19Budgeting in Non-Manufacturing Companies 9-21Merchandisers 9-21Service Companies 9-22Not-for-Profit Organizations 9-2310 Budgetary Control and Responsibility Accounting 10-1Strategies to Help You Relax: Viceroy Hotel Group 10-1Budgetary Control and Static Budget Reports 10-2Budgetary Control 10-2Static Budget Reports 10-3Flexible Budget Reports 10-6Why Flexible Budgets? 10-6Developing the Flexible Budget 10-8Flexible Budget—A Case Study 10-9Flexible Budget Reports 10-10Responsibility Accounting and Responsibility Centers 10-13Controllable versus Non-Controllable Revenues and Costs 10-14Principles of Performance Evaluation 10-15Responsibility Reporting System 10-16Types of Responsibility Centers 10-19Investment Centers and ROI 10-22Return on Investment (ROI) 10-22Responsibility Report 10-23Judgmental Factors in ROI 10-23Improving ROI 10-24Appendix 10A: ROI vs. Residual Income 10-28Residual Income Compared to ROI 10-29Residual Income Weakness 10-2911 Standard Costs and Balanced Scorecard 11-1A Balanced Approach: Anglo Pacific Group plc 11-1Standard Costs 11-2Distinguishing Between Standards and Budgets 11-3Setting Standard Costs 11-4Direct Materials Variances 11-7Analyzing and Reporting Variances 11-7Direct Materials Variances 11-9Direct Labor and Manufacturing Overhead Variances 11-11Direct Labor Variances 11-11Manufacturing Overhead Variances 11-14Variance Reports and Balanced Scorecards 11-16Reporting Variances 11-16Income Statement Presentation of Variances 11-16Balanced Scorecard 11-17Appendix 11A: Standard Cost Accounting System 11-21Journal Entries 11-22Ledger Accounts 11-23Appendix 11B: Overhead Controllable and Volume Variances 11-24Overhead Controllable Variance 11-24Overhead Volume Variance 11-2512 Planning for Capital Investments 12-1Floating Hotels: Holland America Line 12-2Capital Budgeting and Cash Payback 12-3Cash Flow Information 12-3Illustrative Data 12-4Cash Payback 12-5Net Present Value Method 12-6Equal Annual Cash Flows 12-7Unequal Annual Cash Flows 12-8Choosing a Discount Rate 12-9Simplifying Assumptions 12-10Comprehensive Example 12-10Capital Budgeting Challenges and Refinements 12-11Intangible Benefits 12-12Profitability Index for Mutually Exclusive Projects 12-13Risk Analysis 12-15Post-Audit of Investment Projects 12-15Internal Rate of Return 12-16Comparing Discounted Cash Flow Methods 12-18Annual Rate of Return 12-1913 Statement of Cash Flows 13-1What Should We Do with This Cash?: Keyence 13-1Statement of Cash Flows: Usefulness and Format 13-3Usefulness of the Statement of Cash Flows 13-3Classification of Cash Flows 13-3Significant Non-Cash Activities 13-5Format of the Statement of Cash Flows 13-5Preparing the Statement of Cash Flows— Indirect Method 13-7Indirect and Direct Methods 13-8Indirect Method—Computer Services International 13-8Step 1: Operating Activities 13-9Summary of Conversion to Net Cash Provided by Operating Activities—Indirect Method 13-12Step 2: Investing and Financing Activities 13-13Step 3: Net Change in Cash 13-14Using Cash Flows to Evaluate a Company 13-17Free Cash Flow 13-17Appendix 13A: Statement of Cash Flows—Direct Method 13-20Step 1: Operating Activities 13-21Step 2: Investing and Financing Activities 13-25Step 3: Net Change in Cash 13-26Appendix 13B: Statement of Cash Flows— T-Account Approach 13-2714 Financial Analysis: The Big Picture 14-1Making Money the Old-Fashioned Way: Li Ka-shing 14-1Basics of Financial Statement Analysis 14-2Need for Comparative Analysis 14-3Tools of Analysis 14-3Horizontal Analysis 14-3Vertical Analysis 14-6Ratio Analysis 14-9Liquidity Ratios 14-9Profitability Ratios 14-13Solvency Ratios 14-16Summary of Ratios 14-18Sustainable Income 14-20Discontinued Operations 14-21Changes in Accounting Principle 14-22Comprehensive Income 14-22Appendix A Time Value of Money A-1Interest and Future Values A-1Nature of Interest A-1Simple Interest A-2Compound Interest A-2Future Value of a Single Amount A-3Future Value of an Annuity A-5Present Value Concepts A-7Present Value Variables A-7Present Value of a Single Amount A-7Present Value of an Annuity A-9Time Periods and Discounting A-11Present Value of a Long-Term Note or Bond A-11Using Financial Calculators A-14Present Value of a Single Sum A-14Present Value of an Annuity A-15Useful Applications of the Financial Calculator A-16Company Index I-1Subject Index I-3

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Weygandt's Managerial Accounting

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Häftad, Engelska, 2017

AvJerry J. Weygandt,Paul D. Kimmel,Donald E. Kieso

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Tillfälligt slut

Produktinformation

Utgivningsdatum2017-10-24
Mått10 x 10 x 10 mm
Vikt454 g
FormatHäftad
SpråkEngelska
Antal sidor688
FörlagJohn Wiley & Sons Inc
ISBN9781119419655

Tillhör följande kategorier

Redovisning inom Ekonomi och Ledarskap

1 Managerial Accounting 1-1Just Add Water and Paddle: Current Designs 1-1Managerial Accounting Basics 1-2Comparing Managerial and Financial Accounting 1-3Management Functions 1-4Organizational Structure 1-5Managerial Cost Concepts 1-7Manufacturing Costs 1-7Product Versus Period Costs 1-8Illustration of Cost Concepts 1-9Manufacturer Financial Statements 1-11Income Statement 1-11Cost of Goods Manufactured 1-12Cost of Goods Manufactured Schedule 1-12Statement of Financial Position 1-13Managerial Accounting Trends 1-15Service Industries 1-15Focus on the Value Chain 1-16Balanced Scorecard 1-17Business Ethics 1-17Company Social Responsibility 1-182 Job Order Costing 2-1Profiting from the Silver Screen: Disney 2-1Cost Accounting Systems 2-2Process Cost System 2-3Job Order Cost System 2-3Job Order Cost Flow 2-4Accumulating Manufacturing Costs 2-5Job Cost Sheets and Manufacturing Costs 2-7Raw Materials Costs 2-7Factory Labor Costs 2-9Predetermined Overhead Rates 2-12Completed and Sold Manufacturing andService Jobs 2-14Assigning Costs to Finished Goods 2-14Assigning Costs to Cost of Goods Sold 2-15Summary of Job Order Cost Flows 2-16Job Order Costing for Service Companies 2-17Advantages and Disadvantages of JobOrder Costing 2-18Applied Manufacturing Overhead 2-19Under- or Over applied Manufacturing Overhead 2-203 Process Costing 3-1Famed Soft Drink in the Outback: Back o’ Bourke Cordials 3-1Overview of Process Cost Systems 3-2Uses of Process Cost Systems 3-2Process Costing for Service Companies 3-3Similarities and Differences Between Job Order Cost and Process Cost Systems 3-4Recording Costs 3-5Process Cost Flow 3-5Assigning Manufacturing Costs—Journal Entries 3-6Equivalent Units 3-9Weighted-Average Method 3-9Refinements on the Weighted-Average Method 3-10The Production Cost Report 3-12Compute the Physical Unit Flow (Step 1) 3-13Compute the Equivalent Units ofProduction (Step 2) 3-13Compute Unit Production Costs (Step 3) 3-14Prepare a Cost Reconciliation Schedule (Step 4) 3-14Preparing the Production Cost Report 3-15Costing Systems—Final Comments 3-15Appendix 3A: FIFO Method for Computing Equivalent Units 3-19Equivalent Units Under FIFO 3-19Comprehensive Example 3-20FIFO and Weighted-Average 3-254 Activity-Based Costing 4-1Wellness for Customers and the Company: Technogym SpA 4-1Traditional vs. Activity-Based Costing 4-3Traditional Costing Systems 4-3Illustration of a Traditional Costing System 4-3The Need for a New Approach 4-4Activity-Based Costing 4-4ABC and Manufacturers 4-7Identify and Classify Activities and Assign Overhead to Cost Pools (Step 1) 4-7Identify Cost Drivers (Step 2) 4-8Compute Activity-Based Overhead Rates (Step 3) 4-8Allocate Overhead Costs to Products (Step 4) 4-8Comparing Unit Costs 4-9ABC Benefits and Limitations 4-12The Advantage of Multiple Cost Pools 4-12The Advantage of Enhanced Cost Control 4-14The Advantage of Better Management Decisions 4-15Some Limitations and Knowing When to Use ABC 4-16ABC and Service Industries 4-17Traditional Costing Example 4-17Activity-Based Costing Example 4-18Appendix 4A: Just-in-Time Processing 4-21Objective of JIT Processing 4-22Elements of JIT Processing 4-22Benefits of JIT Processing 4-235 Cost-Volume-Profit 5-1Don’t Worry—Just Get Big: Amazon.com 5-1Cost Behavior Analysis 5-2Variable Costs 5-3Fixed Costs 5-4Relevant Range 5-5Mixed Costs 5-5Mixed Costs Analysis 5-7High-Low Method 5-7Importance of Identifying Variable and Fixed Costs 5-9CVP Analysis 5-10Basic Components 5-10CVP Income Statement 5-11Break-Even Analysis 5-14Mathematical Equation 5-14Contribution Margin Technique 5-15Graphic Presentation 5-16Target Net Income and Margin of Safety 5-18Target Net Income 5-18Margin of Safety 5-196 Cost-Volume-Profit Analysis: Additional Issues 6-1The Secret to Supermarket Profitability: Aldi 6-1Basic CVP Concepts 6-2Basic Concepts 6-2Basic Computations 6-3CVP and Changes in the Business Environment 6-5Sales Mix and Break-Even Sales 6-7Break-Even Sales in Units 6-8Break-Even Sales for a Large Number of Products 6-9Sales Mix with Limited Resources 6-11Operating Leverage and Profitability 6-14Effect on Contribution Margin Ratio 6-15Effect on Break-Even Point 6-15Effect on Margin of Safety Ratio 6-15Operating Leverage 6-16Appendix 6A: Absorption Costing Versus Variable Costing 6-18Example Comparing Absorption Costing with Variable Costing 6-19Net Income Effects 6-21Decision-Making Concerns 6-24Potential Advantages of Variable Costing 6-267 Incremental Analysis 7-1The Internet of Clothing: Evrythng 7-1Decision-Making and Incremental Analysis 7-3Incremental Analysis Approach 7-3How Incremental Analysis Works 7-4Qualitative Factors 7-5Relationship of Incremental Analysis and Activity-Based Costing 7-5Types of Incremental Analysis 7-6Special Orders 7-6Make or Buy 7-8Opportunity Cost 7-9Sell or Process Further 7-10Single-Product Case 7-11Multiple-Product Case 7-11Repair, Retain, or Replace Equipment 7-14Eliminate Unprofitable Segment or Product 7-158 Pricing 8-1They’ve Got Your Size—and Color: Zappos.com 8-1Target Costing 8-2Target Costing 8-4Cost-Plus Pricing 8-5Calculating Cost-Plus Pricing 8-5Limitations of Cost-Plus Pricing 8-7Variable-Cost Pricing 8-8Time-and-Material Pricing 8-9Transfer Pricing 8-12Negotiated Transfer Prices 8-13Cost-Based Transfer Prices 8-15Market-Based Transfer Prices 8-17Effect of Outsourcing on Transfer Pricing 8-17Transfers Between Divisions in Different Countries 8-17Appendix 8A: Absorption-Cost and Variable-Cost Pricing 8-19Absorption-Cost Pricing 8-20Variable-Cost Pricing 8-21Appendix 8B: Transferring Goods Between Divisions inDifferent Countries 8-239 Budgetary Planning 9-1What’s in Your Cupcake?: BabyCakes NYC 9-1Effective Budgeting and the Master Budget 9-2Budgeting and Accounting 9-3The Benefits of Budgeting 9-3Essentials of Effective Budgeting 9-3The Master Budget 9-6Sales, Production, and Direct Materials Budgets 9-7Sales Budget 9-7Production Budget 9-8Direct Materials Budget 9-9Direct Labor, Manufacturing Overhead, and S&AExpense Budgets 9-12Direct Labor Budget 9-12Manufacturing Overhead Budget 9-13Selling and Administrative Expense Budget 9-14Budgeted Income Statement 9-14Cash Budget and Budgeted Statement of Financial Position 9-16Cash Budget 9-16Budgeted Statement of Financial Position 9-19Budgeting in Non-Manufacturing Companies 9-21Merchandisers 9-21Service Companies 9-22Not-for-Profit Organizations 9-2310 Budgetary Control and Responsibility Accounting 10-1Strategies to Help You Relax: Viceroy Hotel Group 10-1Budgetary Control and Static Budget Reports 10-2Budgetary Control 10-2Static Budget Reports 10-3Flexible Budget Reports 10-6Why Flexible Budgets? 10-6Developing the Flexible Budget 10-8Flexible Budget—A Case Study 10-9Flexible Budget Reports 10-10Responsibility Accounting and Responsibility Centers 10-13Controllable versus Non-Controllable Revenues and Costs 10-14Principles of Performance Evaluation 10-15Responsibility Reporting System 10-16Types of Responsibility Centers 10-19Investment Centers and ROI 10-22Return on Investment (ROI) 10-22Responsibility Report 10-23Judgmental Factors in ROI 10-23Improving ROI 10-24Appendix 10A: ROI vs. Residual Income 10-28Residual Income Compared to ROI 10-29Residual Income Weakness 10-2911 Standard Costs and Balanced Scorecard 11-1A Balanced Approach: Anglo Pacific Group plc 11-1Standard Costs 11-2Distinguishing Between Standards and Budgets 11-3Setting Standard Costs 11-4Direct Materials Variances 11-7Analyzing and Reporting Variances 11-7Direct Materials Variances 11-9Direct Labor and Manufacturing Overhead Variances 11-11Direct Labor Variances 11-11Manufacturing Overhead Variances 11-14Variance Reports and Balanced Scorecards 11-16Reporting Variances 11-16Income Statement Presentation of Variances 11-16Balanced Scorecard 11-17Appendix 11A: Standard Cost Accounting System 11-21Journal Entries 11-22Ledger Accounts 11-23Appendix 11B: Overhead Controllable and Volume Variances 11-24Overhead Controllable Variance 11-24Overhead Volume Variance 11-2512 Planning for Capital Investments 12-1Floating Hotels: Holland America Line 12-2Capital Budgeting and Cash Payback 12-3Cash Flow Information 12-3Illustrative Data 12-4Cash Payback 12-5Net Present Value Method 12-6Equal Annual Cash Flows 12-7Unequal Annual Cash Flows 12-8Choosing a Discount Rate 12-9Simplifying Assumptions 12-10Comprehensive Example 12-10Capital Budgeting Challenges and Refinements 12-11Intangible Benefits 12-12Profitability Index for Mutually Exclusive Projects 12-13Risk Analysis 12-15Post-Audit of Investment Projects 12-15Internal Rate of Return 12-16Comparing Discounted Cash Flow Methods 12-18Annual Rate of Return 12-1913 Statement of Cash Flows 13-1What Should We Do with This Cash?: Keyence 13-1Statement of Cash Flows: Usefulness and Format 13-3Usefulness of the Statement of Cash Flows 13-3Classification of Cash Flows 13-3Significant Non-Cash Activities 13-5Format of the Statement of Cash Flows 13-5Preparing the Statement of Cash Flows— Indirect Method 13-7Indirect and Direct Methods 13-8Indirect Method—Computer Services International 13-8Step 1: Operating Activities 13-9Summary of Conversion to Net Cash Provided by Operating Activities—Indirect Method 13-12Step 2: Investing and Financing Activities 13-13Step 3: Net Change in Cash 13-14Using Cash Flows to Evaluate a Company 13-17Free Cash Flow 13-17Appendix 13A: Statement of Cash Flows—Direct Method 13-20Step 1: Operating Activities 13-21Step 2: Investing and Financing Activities 13-25Step 3: Net Change in Cash 13-26Appendix 13B: Statement of Cash Flows— T-Account Approach 13-2714 Financial Analysis: The Big Picture 14-1Making Money the Old-Fashioned Way: Li Ka-shing 14-1Basics of Financial Statement Analysis 14-2Need for Comparative Analysis 14-3Tools of Analysis 14-3Horizontal Analysis 14-3Vertical Analysis 14-6Ratio Analysis 14-9Liquidity Ratios 14-9Profitability Ratios 14-13Solvency Ratios 14-16Summary of Ratios 14-18Sustainable Income 14-20Discontinued Operations 14-21Changes in Accounting Principle 14-22Comprehensive Income 14-22Appendix A Time Value of Money A-1Interest and Future Values A-1Nature of Interest A-1Simple Interest A-2Compound Interest A-2Future Value of a Single Amount A-3Future Value of an Annuity A-5Present Value Concepts A-7Present Value Variables A-7Present Value of a Single Amount A-7Present Value of an Annuity A-9Time Periods and Discounting A-11Present Value of a Long-Term Note or Bond A-11Using Financial Calculators A-14Present Value of a Single Sum A-14Present Value of an Annuity A-15Useful Applications of the Financial Calculator A-16Company Index I-1Subject Index I-3